PIMCO has launched the PIMCO Credit Absolute Return Fund, a go-anywhere type of fixed income fund that will employ some hedging strategies, including shorting and credit default swap derivatives, and be managed by Mark Kiesel.
As a go-anywhere fund, the fund will not be constrained by a traditional credit benchmark index. Instead, it will benchmark against the three-month London Interbank Offered Rate (LIBOR). As well, it will take a macroeconomic view to select what Kiesel calls “top picks.”
“Some clients may view the strategy as a ‘light’ version of a hedge fund strategy, given its objective of delivering positive returns across various market environments and its unconstrained approach to investing in global credit markets,” Kiesel said.
PIMCO already runs a handful of hedge fund-type products, including the $17 billion PIMCO Unconstrained Bond Fund.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access